Investors await US CPI data released this week to make new decisions
The European stock markets are starting a week marked by the release of the CPI in the US. It is one of the references that the Federal Reserve (Fed) follows more closely to make its monetary policy decisions, along with the evolution of the labor market , which in recent weeks has shown its resistance to the crisis, making the more aggressive tone of the body originated.
The Ibex-35 returns 0.31% and stands at 7,413.5 points, with increases led by ArcelorMittal (+2.86%), Acerinox (+2.62%), Cellnex (+2.49%), Fluidra (+2.45%), Indra (+1.30)%) and Inditex (+1.02%). In the negative area, PharmaMar (-2.72%), Acciona (-2.29%), Colonial (-2.09%), Repsol (-1.89%) and ACS (-1.89%) stood out .
The market remains particularly alert to the evolution of the debt markets, where bond yields (which move inversely with price) continue to rise, with the 10-year Spanish bond yielding 3.4% .
“We see very tense markets, especially in the fixed income segment,” said Pedro del Pozo, director of financial investments at Mutualidad de la Abogacía. In this sense, the expert explains that “we are in a rather counter-intuitive moment, where the markets act in a positive way the moment they see an economic contraction, which would mean a little less inflation, and consequently the types of importance would not rise that much.
Investors are thus leaving the additional support measures announced on Monday by the Central Bank of England in the background to ensure an orderly end to the emergency purchase program launched on September 28.
To date, the Bank of England has held 8 daily auctions, offering to buy up to 40,000 million pounds sterling (45,530 million euros), although it has only bought bonds for around 5,000 million pounds sterling (5,690 million euros).
In the commodities market, oil prices are starting to fall after last week’s strong rally and a barrel of Brent-type, the benchmark in Europe, stands at $96.93, while the US West Texas hovers around $92.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
